I also recently sold out of NEAGX (was only a few percent of my OEF only account), as it has not participated in the giant cap stock gains recently, as well as a time to pull in the horns a bit…..plus it quite very tied into the incredible performance of SMCI (similar to Baron funds and TSLA, or Kinetics funds and TPL), so I got rid of it. Moved proceeds to FSELX.

My portfolio is taxable and is primarily buy and hold. High yield stock and utility stock sleeves were added to it in 2020 and were funded during 2020 and the first part of 2021. Most of the dividends earned are released for personal use. Fido says the portfolio is currently 73% invested in stocks. It is overweight in REITs, Financials, Energy, and Utilities (the Financial and Energy sector investments include BDCs and LPs). The portfolio's YTD total returns have averaged between perhaps 40% and 75% of the SP500 with the direction of its trend line in general corresponding with the trend line of the SP500. The portfolio fares better on a relative basis when the bond market focuses on the prospect the Fed may begin to cut interest rates sooner rather than later (or "never"). It will probably benefit more on a relative basis if the Fed actually does begin to cut interest rates as the REIT sector will likely stop being shunned.

Further reduced stock exposure today by about another 10%, while slightly reducing Tech and MAG7 allocations. Reduced FSELX allocation by about 1/3. SOLD entire position in NEAGX. Parking all proceeds in FZDXX for the time being. Now down to 11 OEFs in Market Portfolio. It's been a blowout 1st half of 2024. Simply booking some gains and reducing stock exposure as (IMO) uncertainty about the 2nd half of 2024 increases.

What do the seasoned investors on this board think of capital groups ETF’s as a whole? But In particular, CGUS, CGDV, CGGR?
I’ve never invested in Capital Group funds until they entered the ETF market. I currently hold double-digits in CGUS and CGDV. I’ve been pleased with their performance so far, although they have a little more overlap (per etfrc.com).
I like to invest in active funds to compliment the passive funds I own. FYI : I only hold a handful of funds.
There seems to be enough uniqueness because they often zig/zag somewhat.
Any comments or thoughts are greatly appreciated! Thx. Matt

@WABAC, Thanks for the link.
I have not looked into the fund rules (by prospectus) for syncing up with the index.
I expect passive ETFs to have cap gains of any kind when constituents get acquired or are otherwise eliminated (as a publicly trading co) between rebalancings / reconstitutions. I expect these ETFs to use APs to minimize cap gains. I get that sometimes the process is not available.
This will be my last post.

JPMorgan callables are sucker bait. They will be called, and as soon as possible.

I reserve the term "sucker bait" for introductory high yield bank CDs that automatically roll over to some lower rate before you can get out. Even if you get a free toaster.

I have several Capital One CDs, paying over 5%. When I set those up, I was given choices of what happens to the maturing CDs, and my choice was for them to be deposited into a High Yield Savings Account, currently paying over 4%. When those proceeds are placed into my Savings Account, I will decide whether I want to re-invest in future CDs at Capital One, or transfer them to my Schwab Account for options there, including CDs or MMs or open end Mutual Funds, etc etc.

Capital Group/American Funds is the class champion. It has up to 19 OEF classes - load, no-load (529, taxable, Retirement), and now has several ETFs. It has funds for many price points.
I have had some lowest ER R6 classes in 403b.

....Which is why I've steered clear. How many stinking fund-classes do ya NEED? Nothing should be that complicated.

Capital Group/American Funds is the class champion. It has up to 19 OEF classes - load, no-load (529, taxable, Retirement), and now has several ETFs. It has funds for many price points.
I have had some lowest ER R6 classes in 403b.

Good interview, thx.
As someone who has had a very large holding in Capital Group funds for nearly 20 years, I've been very pleased with them.

Thanks @hank. I found this quite interesting and positive with the content. I Have a lot invested in Capital Group. I put quite a bit in CGBL, the balanced fund and have a good holding in CGDV, dividend value. Also have a stake in CGGR, their domestic growth fund.

Gitlin stresses the importance of staying the course. The hazards of market timing. Some poignant comments about the adverse effects going public can have on an investment company. Not fond of DIY investors. What caught my attention was that he replaced highly capable fixed income head Mary Miller at T Rowe Price in 2009 after Miller left the firm for a position in Washington. I’ve long wondered why Price’s fixed income division came up lacking after Miller departed. Now I know. Says Gitlin, “I wasn’t qualified for that position.”

I'm actually considering CapitalOne because of that change. I want a backup card for foreign travel - no foreign transaction fee and preferably a MC (since I've got a Visa card for travel). Now that Capital One has switched, it meets my requirements.

I think people are making this too hard. The question is to compare what happened by selling/repurchasing vs. what would have happened by simply holding.
Holding: 1,000 shares before and after, plus an extra $87 in cash (from divs).
Sell/repurchase: 1,000 shares before and after, plus $290 in cash (as hank described)
The difference, as hank also described, is a net cash gain of $203.
There's more going on if one looks at cap gains. As yogi described, the clock gets reset if there was a gain based on the original cost of the shares. If there was a loss, it's a wash sale, no clock reset. But being in a tax-sheltered account, none of this matters.

As @yogibearbull pointed out, you seem to be missing the capital gain/loss on the sale of the original shares in your calculation.

Any comments on Primecap Core vs Primecap? I am considering adding Primecap Core to complement my current stake in Capital Opportunity fund. Compared to VHCAX, VPCCX leans more toward Large Caps (72% vs 66%) and Value (25% vs 20%), which should make it a good fit for my portfolio.

Eight or nine years of redemptions probably explains it.
BTW, those consistent redemptions have resulted in years and years of significant capital gains distributions. On an after-tax basis both of these funds have underperformed the S&P 500, by more than 100 bps a year for over a decade.

@hank, I used to own fixed income CEFs until sometime in 2021. After that I switched to trading them but not regularly as fixed income volatility has been high. Except for MLP CEFs, the only equity CEFs I ever owned are preferred stock CEFs which I treat as fixed income CEFs, but I have not owned preferred stock CEFs after 2020. Currently, I own the MLP allocation CEF, converting to fixed income CEF, PDX - but it is so small in my portfolio, after selling to buy another fixed income CEF, that it is not worth mentioning either. Now, I have difficulty with fixed income without leverage and so, fixed income CEFs in size would be too distracting for me. My hats off to folks that own levered fixed income CEFs (and MREITs) in an inverted yield curve environment.

@Roy - Yes the fund uses leverage. I'm unfamiliar with the term ROP. If you meant to say ROC (Return of Capital) there isn't any at this time (past year) and there has been very little if any during the course of its existence.
PIMCO Dynamic Income Fund

Good point on the liquidity issues if not adjusted for free-float. I guess liquidity is paramount for capital markets functioning.
I see heavy insider selling in some company shares for nearly year and no insider buying. I am also seeing hedge funds lightening up on some of the retail favored stocks. All these extra shares add to the free-float, which then impacts how much of the retail favored stocks are weighted in the index. (At least they are not doing it by trading volume.)
XLK methodology is a bit strange any way.
Let us see when Apple gets back what it is giving up in the index.

The use of free-float in indexes is sensible as that is the float that is publicly available. So, excluded are restricted stock (held by executives, directors, connected entities, etc), closely-held stock (insiders, major holders), Treasury stock (buybacks that aren't cancelled). If total market-cap is used, then funds will try to buy many more shares than are publicly available, and that would create a problem.
Many recent IPOs offer extreme examples (ARM, Saudi ARMCO - in Middle Eastern markets, etc) where only a small % of market-cap is issued.
Most other funds use proportional adjustments when caps are encountered. For example, if 3 stocks are eligible to be counted in 50% limitation, and they have approximately the same free-floats, then 3X = 50, or X = 0.1667, or 16.67% weight for each may be used. But the XLK formula knocks down the smallest (even by the tiniest amount), so 2X + 4.5 = 50, or X = 0.2275, or the weights 22.75%, 22.75%, 4.5%. That is what will cause this massive shift as NVDA used to be #3, but now AAPL is #3.
https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/free-float/
https://www.investopedia.com/terms/f/freefloatmethodology.asp